Forum Replies Created
Hi cats
Yes subject to the current market valuation and lender with whom your current loan is with you could access equity upto 90% of the market valuation of the property.
Buying with someone else can be a way into the market buy you would both want to have a clear agreement written so that you dont end up falling out over it. Normally a clear exit strategy would be recommended in case 1 party wants to sell and the other doesnt.
As for structure this will vary but normally a Discretionary Trust with a Corporate Trustee and the shares own by DFT could work.
Just need to bear in mind that buying with someone else will have a bearing on your own serviceability in the future as lenders will only take 50% of the Gross rent into consideration however will look at 100% of the loan liability so you actually end up going backwards as far as borrowing power is concerned.
Richard Taylor | Australia's leading private lender
Ok hate to say if you can afford $250 then that is going to give you around you around $155,000 of borrowing so not sure if you are going to get anything for that.
If you have clean credit and with FHOG can get upto 10% deposit then a shared equity loan might be more preferential than a wrap. Would give you a cheaper interest rate you could choice the property and only pay interest on 70% of the loan.
Credit underwriting is fairly hard so you would need good emploment and residency stability but not out of the question.
Richard Taylor | Australia's leading private lender
Hi Jess
That should be the easy bit.
Suprised no Qld investors on the forum havent jumped it yet to say Yes please.
Where are you looking and at what price range.
Richard Taylor | Australia's leading private lender
WJ
Very simply have the IP loans to 80% of the market value of the security (probably in the name of a DFT to reduce your liability) with 20% coming from the LOC on your PPOR.
When the properties have increased in value bring the IP loan back upto 80% of the increased valuation paying down the Invt LOC. This in turn can be used again or merely reduce the limit.
Eventually all IP loans will be 100% standalone and your PPOR will totally separate.
This assumes that all loans are full doc if they are lodoc it is going to be a little more challenging.
Richard Taylor | Australia's leading private lender
Bear in mind in a block that size you will be looking at Commercial financing so with it comes the costs and higher interest rates. Not the end of the world i guess for a short period but bear in mind it will impact you bottow line.
Course also means you need to front up a bigger deposit.
Richard Taylor | Australia's leading private lender
oh you skeptic GOM lol.
Richard Taylor | Australia's leading private lender
Appreciate the comment the Crest.
Assure everyone it is not done just to capture members business.
Richard Taylor | Australia's leading private lender
Hi Nick
Tell us what you are after and possibly we can assist.
I have many forum clients all over Australia and indeed the world so Melbourne isnt that far.
This day and age most loans are lodged electronically so applications and documentation is emailed.
Obviously if you want someone to sit down and chat with I cant help you but anything else more than happy to assist
Richard Taylor | Australia's leading private lender
Hi Sean
Type of security and valuation / total lvr / income and liabilities.
In the main the lender would take your NZ property as well as the Oz property to be purchased as security.
Richard Taylor | Australia's leading private lender
Hi Nick
Tell us what you are after and possibly we can assist.
I have many forum clients all over Australia and indeed the world so Melbourne isnt that far.
This day and age most loans are lodged electronically so applications and documentation is emailed.
Obviously if you want someone to sit down and chat with I cant help you but anything else more than happy to assist.
Richard Taylor | Australia's leading private lender
How many in the block ?
Richard Taylor | Australia's leading private lender
Hi Sean
Must admit i would say NO outright.
Have a couple of lenders that might consider the deal depending on a few factors.
Richard Taylor | Australia's leading private lender
Hard but not impossible there is a difference.
Richard Taylor | Australia's leading private lender
Hi Turi
Same response as i posted on SS
As far as I am aware there is only 1 lender left who is doing lodoc refi with "cash out" without the need for BAS or Trading Statements.
Purchases are slightly different and upto 85% is still available if you are happy to pay for it.
Richard Taylor | Australia's leading private lender
SNM
Seems like our virgin friend just came and went and didnt have time to answer your questions.
Maybe he has all the investors he needs which is a shame as I am sure a lot of forum members would have love to have invested some of their hard earned with him…..NOT.
Richard Taylor | Australia's leading private lender
Hate to say Wendy if you do this you will very quickly run out of lenders.
The emphasis is on structuring the loan correctly to avoid cross collateralising the loans and where possible reduce your risk exposure. As long as they are done properly I wouldnt have an issue in doing a few with the same lender.
Richard Taylor | Australia's leading private lender
A company called Cordells provides a list of DA approved sites but not sure how far they can go.
Richard Taylor | Australia's leading private lender
Hi Jess
Would you like to expand a little more on what you are after.
Are you wanting to become an wrapper and buy and home and onsell it to a potential buyer and collect the higher cash flow or other way round and am looking for someone to buy a house for you to live in and enter into a contract to buy it off them.
Richard Taylor | Australia's leading private lender
Asset protection is one thing but with 5 out of 6 properties already positively geared a DFT would give you the flexibility to distrubute positive income to the beneficiaries who maybe on a lower income than you and this will reduce your marginal tax income.
Richard Taylor | Australia's leading private lender
This question has been asked and answered a dozen times since Xmas.
My serviceability is almost maxed out, it means that I would not get the benefits of having multiple trusts to buy multiple properties (getting this from Steve's new book.
Buying in Trust or Multiple Trust DOES not increase your serviceability.
Richard Taylor | Australia's leading private lender
